That acceptance is one of the most important conclusions in the report, and could even be self-fulfilling, Gabriel Stein, Director at Lombard Street Research told CNBC's European Closing Bell.

"Some of these countries are insolvent... giving them more money just doesn't do anything," he said.

Fitch became the first ratings agency to strip Ireland of its 'A' credit status on Thursday, slashing it by three notches to BBB+ following the debt-stricken government's request for an EU/IMF bailout

As the European debt crisis continues to rattle investors' nerves, German Chancellor Angela Merkel and French President Nicolas Sarkozy meet in Germany on Friday to discuss the economy and employment.

The bilateral meeting comes ahead of a meeting of European Union heads of state in Brussels next week, when leaders will once again seek to find a way to stem panic on financial markets over the high levels of debt of some of European member states.